European Telcos Demand Royalty Cap

Law360, New York (November 22, 2005, 12:00 AM EST) -- Several of Europe’s major telecommunications companies have joined forces to dispute Europe’s current intellectual property rules, demanding that the European Telecommunications Standards Institute review rules that the companies claim permit excessive demands for royalties.

Vodafone, T-Mobile, Telefonica, Orange, and Research In Motion, among others, have taken issue with the ETSI’s intellectual property standards, claiming that the current rules do not adequately protect companies from being forced to pay unnecessarily high royalties.

The telecom companies have suggested that the ETSI cap the maximum royalty payment required of...